Albania: Domestic Banks Struggling to Keep Up

Politics ♦ Published: November 8, 2013; 18:57 ♦ (Vindobona)

According to a report by the European Bank for Reconstruction and Development (EBRD), the Albanian financial sector is dominated by foreign banks. Domestic banks are struggling to keep up with the internationally operating competition.

Albania: Domestic Banks Struggling to Keep Up / Picture: ©

Most financial institutes in the Western Balkan state are from Austria, Greece or Italy, and, according to the surveyed banks in the BEPS II, a strong competition to SMEs as well as to large enterprises and retail lending.

Financial institutes in Albania are struggling with a weak demand in credits. Moreover, the lacking creditworthiness of bank customers was a key reason for a…